Tuesday, June 2, 2015

Greek bailout monitors hold emergency summit

Financial Times
June 1, 2015

German chancellor Angela Merkel was on Monday evening hosting an emergency summit in Berlin over the Greek crisis to thrash out differences between the debt-laden country’s bailout monitors and to accelerate efforts to reach a deal with Athens.

Christine Lagarde, the managing director of the International Monetary Fund, and Mario Draghi, head of the European Central Bank, arrived secretly in Berlin on Monday to join France’s President François Hollande and European Commission president Jean-Claude Juncker, who were already in Berlin for a pre-arranged meeting with the German chancellor.

The hastily-called gathering comes amid mounting uncertainty about Greece’s capacity to keep paying its bills and tensions between the creditor organisations which are under intense pressure to release a desperately needed €7.2bn so that Greece can avoid a possible default and a rapid exit from the eurozone.

The long negotiations have seen differences emerging between the bailout monitors, and this summit was called to try and settle matters. The IMF has been holding to a tough line, out of respect for its own lending rules and regard for pressure from countries in other parts of the world, which say Athens has already enjoyed very favourable treatment.


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